Asia is in the shadow of war. The world is now facing an oil crisis due to the impact of the war between Israel, America and Iran. Iranian missiles are wreaking havoc on countries like Bahrain, Saudi Arabia, United Arab Emirates, Qatar, Iraq and Kuwait. Iran has blockaded the ‘Strait of Hormuz’ in such a way that no ship can pass there without its consent. India’s energy supply has also been disrupted due to the Hormuz Block.
There is going to be a situation like shortage of Liquid Petroleum Gas (LPG) and Liquid Natural Gas (LNG) in India. India is 90 percent dependent on imports for its oil needs. India buys more than 60 percent of LPG, a major consignment of which comes from the Gulf countries. Not only this, India’s problems are increasing all around. India’s fish and leather industries have also been affected.
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Why the impact on fishing and leather industries?
Due to the ongoing conflict between America, Israel and Iran in West Asia, India is not able to send its products to the Gulf countries. The products are ready but they have been held up due to uncertainty at sea and airports. This sector had recovered from old challenges like Corona epidemic, political tension with China and 50 percent tariff of Trump government, but now the new crisis has once again increased the difficulties.
What is the loss?
About 3,000 tonnes of cargo is exported every month through sea route from Kolkata itself. Indian products are exported to countries like UAE, Qatar, Kuwait, Bahrain, Saudi Arabia, Oman, Europe, USA and Canada. Of this, more than 50 percent is related to leather products.
Clothing, automobile parts, machinery and perishable items like vegetables, fish, meat are also shipped in large quantities. These products are shipped by Emirates and Qatar Airways. Many Indian shipments have been stuck or detained since the war broke out on February 28.
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Why are the circumstances not under control yet?
There is a situation of war in the Gulf countries. In such a situation, exporters are afraid to send the shipment. Qatar has limited flights so far. The condition of Emirates is also similar. The transport charge on non-perishable products, which was earlier Rs 150 to Rs 180 per kg, has now increased to Rs 400 per kg. UAE has not yet decided to increase transport charges on perishable products like milk, meat, fish, fruits and vegetables. If the situation continues like this, the crisis will increase further.
Which industry was most affected?
Leather goods have been affected the most. A report in The Telegraph suggests that a consignment of 1.5 tonnes of leather wallets bound for Germany has been stuck at the airport since February 27 as Qatar Airways did not resume flights. Leather goods worth Rs 5,000 crore are exported from Eastern India every year. Products like wallets, belts, industrial gloves and finished leather are exported. Now new orders are not coming due to old ones not being delivered, because exporters are waiting for the situation to improve.
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what’s the risk?
Due to the war, the situation has become such that now even the exporters coming from France are scared. Flights have stopped, no one wants to take another risk. Leather exports to Europe via the Red Sea and Suez Canal are also affected. Now the insurance premium of these ships and products has increased.
India sells industrial gloves and garments to Europe, America and West Asia. The Telegraph reports that new orders are seeing a decline of more than 25 percent. Due to increase in transport charges, exporters have to give discounts. Till now, 15,000 industrial garments have been sent to Bahrain every two months. This shipment has also stopped. Shipping companies are charging $1,000-2,000 extra for emergency and peak season.
Why are fish exporters worried?
Fish exporters are also facing problems. Seafood Exporters Association says that there was some relief when America reduced the tariff from 50 percent to 18 percent. Now new crises are at hand. There was some relief due to freight charges, but now there is a new crisis.
Transport has become expensive, most of the shipments to Gulf countries have been stopped since February 28. Most of the products are kept in cold storage. India sells a lot of fish to countries like Kuwait and Bahrain. Meat importers are also facing problems. People are getting worried because of this war. Costs have increased and the future is in limbo. |
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What are the trade figures saying?
Data from the Marine Products Export Development Authority (MPEDA) show that between 2024 and 2025, India has done trade worth about $278.31 million with Gulf countries. There is huge demand for prawns and frozen fish in Gulf countries. Fresh fish are also sent. The United Arab Emirates (UAE) is the largest buyer of Indian marine products among the Gulf countries. After this there are Saudi Arabia and Oman but due to war everywhere business is at a standstill.
Clouds of crisis over leather industry too
Nearly 25 percent increase in leather and footwear exports was seen in the year 2024-25 but now there are new challenges. First, trade was disrupted because of American tariffs and now because of war. America used to buy 21 percent of India’s total leather exports, now it is disrupted. Challenges like tariffs remain. Now India is not able to send its products to Germany, UK, Italy and France. Similar apprehensions remain in the Gulf countries also. Indian exporters are hopeful that the war will stop soon and trade will become normal once again.
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